Unum opens new home

The city’s chief executive, saying he had the authority to make the name change under the emergency powers granted him by Worcester’s charter and the federal Patriot Act, took the action during Friday’s grand opening ceremonies of Unum Group’s local headquarters in a new seven story building at 1 Mercantile St.

After those attending gasped in surprise at the announcement, Mr. O’Brien confessed he didn’t really have the power to change the street’s name.

Mr. O’Brien’s pronouncement and his presentation of an “official” Unum Way street sign to company officials were one of several lighthearted moments that took place as Unum formally opened its doors to the public.

Friday’s event drew government, business, community and civic officials, as well as Unum employees.

Unum is the first tenant of the downtown CitySquare project.

J. Christopher Collins, Unum senior vice president and deputy general counsel, said the $70 million structure has exceeded expectations and that employees were now “experiencing the vibrancy of downtown.”

For decades, Unum’s home has been in a complex at 18 Chestnut St. The disability insurer made the move downtown six weeks ago.

Company officials said they began thinking about moving about eight years ago. They said cost and the impact to employees and the city made them make the decision to move into the developing CitySquare project.

Thomas R. Watjen, the president and chief executive officer of the Chattanooga, Tenn.-based company, said he believes Unum’s move will spur further downtown development.

Mr. Watjen, who thanked employees for doing their jobs flawlessly through the transition, said a company’s connections to a community are important.

Lt. Gov. Timothy P. Murray, who as mayor spearheaded the effort to demolish the old Worcester Galleria mall and to link Foster Street with Washington Square, said a lot of rhetoric pits government against private interests.

But, he said, collaborations between the two lead to successes like the construction of the Unum building.

“This (downtown) momentum will continue,” Mr. Murray said.

Mayor Joseph M. Petty, who was concerned for some time that Unum would abandon the city, said he was pleased to personally greet employees as they went to work for the first time last month in their new home.

“It was great to see all the employees with smiles on their faces,” he said.

Fred Eppinger, Hanover Insurance’s chief executive, said there was a lot of concern, including among shareholders, when his firm took over the CitySquare project from Berkeley Investments of Boston.

“But we felt this was a good idea,” he said.

The 214,000-square-foot Unum building was constructed by Hanover but has since been sold to a Florida real estate company. Unum holds a 17-year lease on the property.

Mr. Eppinger said CitySquare is still the largest urban development project outside of Boston.

Kevin P. McCarthy, executive vice president and chief operating officer of the Unum Group, said it’s important that companies partner with the community.

Mr. McCarthy, who was raised in Webster Square and whose father was a bricklayer, said Unum has associated itself with many local entities, including South High Community School, the Nativity School, the United Way of Central Massachusetts and the Hanover Theatre for the Performing Arts, among others.